FINANCIAL ENGINEERING (2 Credits)

Learning Outcomes:

On successful completion of this course, student will be able to: LO1 – Calculate financial assets value; LO2 – Use time value of money concepts and rate of return method to select among alternatives (risky and non-risky); LO3 – Apply cashflow estimation and risk analysis concepts to determine suitable capital structure for a given problem; LO4 – Use capital working management concepts to select financing policy alternatives; LO5 – Use binomial lattice model to optimize capital value of standard and non standard option.

Topics:

1. An Overview of Financial Management and the Financial Environment
2. Risk, Return, and the Capital Asset Pricing Model
3. Discounted Cash Flow Valuation
4. Bonds, Bond Valuation, and Interest Rates
5. Stocks, Stock Valuation, and Stock Market Equilibrium
6. Options and Corporate Finance
7. Initial Public Offerings, Investment Banking, and Financial Restructuring
8. The Cost of Capital
9. Portfolio Theory, Asset Pricing Models, and Behavioral Finance
10. Cash Flow Estimation and Risk Analysis
11. Derivatives and Hedging Risk
12. Mergers and Acquisitions
13. Working Capital Management